US stocks open higher after Fed chair signals rate cut in September

VIX volatility index falls 1.7% to 16.08

By Ovunc Kutlu

ISTANBUL (AA) - Major stock exchanges in the US opened Thursday higher after Federal Reserve Chair Jerome Powell provided Wednesday clear signals for a possible interest rate cut in September.

The tech-heavy Nasdaq increased 99 points, or 0.56%, to 17,698 at 9.41 a.m. EDT and the S&P 500 rose 34 points, or 0.61%, to 5,556.

The Dow, meanwhile, increased 168 points, or 0.41%, to 41,010.

Powell said in his post-meeting press conference Wednesday that rising confidence on inflation and a solid labor market could put the September rate cut on the table for the central bank.

"If we do get the (macroeconomic) data that we hope to get, then a reduction in our policy rate could be on the table at the September meeting," he said.

The VIX volatility index, also known as the fear index, fell 1.7% to 16.08. The 10-year US Treasury yield declined 2.4% to 4.006%.

The dollar index increased 0.18% to 104.28, while the euro lost 0.2% to $1.0804 against the greenback.

Precious metals were mixed, with gold adding 0.13% to $2,450 per ounce but silver decreasing 0.13% to $28.97.

Oil prices were up more than 0.6%, with global benchmark Brent crude priced at $81.34 per barrel and US benchmark West Texas Intermediate at $78.33.

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